Why soaring onion prices may hurt govt more than tomatoes

To contain food inflation, the government has imposed a 40% export tax on onions and plans to sell them locally at subsidized rates. Stable food prices are crucial for Modi as he seeks re-election next year. The government is also taking measures to address rising costs for other farm commodities due to poor weather. The threat of El Niño-induced poor weather may further impact onion crops in Maharashtra, the top onion-growing state in India.

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